Smart investors are looking for safe ways to cash in on the artificial intelligence (AI) boom. This innovative technology is expected to bring significant cost savings and productivity gains to organizations that deploy it. AI could boost global economy by $15.7 Trillion By the end of 2010, according to consulting firm PwC.
Companies that help customers harness the power of AI can reap significant rewards for investors. Learn about her two technology leaders who are particularly well-positioned to leverage AI to benefit shareholders.
Advanced Micro Devices
Nvidia is one of the biggest winners of the AI boom, and rightly so. Semiconductor giants account for the majority of the chips that power cutting-edge AI applications. But demand for these cutting-edge chips is so high that companies of all sizes are looking for more supply. Advanced Micro Devices (NASDAQ: AMD) We plan to provide it.
CEO Lisa Su sees a $400 billion opportunity by 2027 in so-called AI accelerators that help accelerate machine learning workloads in data centers. AMD wants to be a power player in this fast-growing market. And we believe our powerful new chipset will make that possible.
The company's MI300 accelerator combines a central processing unit (CPU), graphics processing unit (GPU), and high-bandwidth memory in an innovative unified design.companies like meta platform and microsoft We are intrigued by the potential performance and efficiency gains that AMD's chips can deliver for cloud computing operations. Big chip buyers want more competition in the supply-constrained AI chip market and are likely to send significant business to AMD.
AMD also hopes to usher in a new wave of AI-enabled personal computers (PCs). The chipmaker's high-performance Ryzen 8040 processors can run AI applications more efficiently on laptops and other mobile devices. Major computer equipment manufacturers Dell, Acer and Lenovo are starting to include AMD's new AI processors in their latest PCs. That's just the beginning of what could become a massive trend. According to Canalys, by 2027, 60% of all PCs shipped will be able to run accelerated AI applications.
taiwan semiconductor manufacturing
Someone has to actually assemble the chips designed by AMD, Nvidia, etc.This is the domain of the strong taiwan semiconductor manufacturing (NYSE:TSM). The leading provider of semiconductor foundry services produces large quantities of the world's most technologically advanced electronic components.
In 2023, TSMC manufactured approximately 12,000 unique products using approximately 300 different technologies for more than 500 customers.Major customers include: apple, inteland broadcomalong with many other major chip designers and buyers.
TSMC's leading position in the foundry market and its far-reaching influence on the global economy have resulted in high rewards for investors. The company has grown sales and earnings by more than 17% annually over the 30 years since it began paying dividends in 2004, providing reliable cash payouts to shareholders.
We expect this strong financial performance to continue. The government is seeking billions of dollars in tax incentives for TSMC to build a new manufacturing site to strengthen the supply chain and ensure access to increasingly important cutting-edge chips. There is. TSMC plans to build factories in the United States, Germany, and Japan in the next few years.
Demand for AI chips is already fueling growth for tech giants. TSMC's March net revenue rose 34% year-on-year to NT$195.2 billion ($6.1 billion).
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Randi Zuckerberg is a former head of market development and spokesperson at Facebook, sister of Meta Platforms CEO Mark Zuckerberg, and a member of the Motley Fool's board of directors. Joe Tenebruso has no position in any stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends his Broadcom and Intel and recommends the following options: A long January 2023 $57.50 call on Intel, a long January 2025 $45 call on Intel, a long January 2026 $395 call on Microsoft, a short January 2026 $405 call on Microsoft, and a long January 2026 $405 call on Microsoft. Call short call $47 Intel in May. The Motley Fool has a disclosure policy.
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